Hello solar enthusiasts,
Let me delve right into an intriguing discussion that took place on a live podcast by well-respected tax and legal experts. A topic that gained a hell lot of attention is how a possible Republican administration would deal with the Inflation Reduction Act, which since its passage in August 2022, has seen investments exceed $240 billion in clean energy manufacturing and infrastructure projects.
More significant is the fact that these investments see $86 billion being devoted to solar, wind, and battery energy storage projects. These projects make up a considerable chunk of the overall projects, hinting at a growing interest in solar. Whether this interest means more solar companies will be entering the industry or if existing solar companies will expand their operations, only time will tell. However, it is good news for any prospect planning to install solar panels for your home since increased competition often leads to better deals for the consumers.
Furthermore, with over 170,000 direct jobs already created due to the Inflation Reduction Act and an estimated 1.5 million new jobs in clean energy expected by 2030, it’s more likely that you’ll find a solar company within reach. A key question that the podcast touched on was the future of this Act under a possible Republican administration. Top speculation suggests that the Act could be scrapped immediately if the Republicans come into power. It is however noteworthy to consider that for this to happen, the Republicans would also need to control the House and the Senate.
The intriguing twist is that despite the political divide, there are a few provisions within the Act that may have bipartisan support. These include carbon capture, hydrogen, fuel credits, and potentially the domestic manufacturing tax credits. This could mean that even with a change in administration, provisions favorable to solar companies and home-based solar array installations may continue to benefit.
The podcast panel made it clear that any rollback of the Inflation Reduction Act would likely be tied to the possible extension of the tax cut from 2017, which is set to expire in 2025. They also touched on the likelihood of reexamining the electric vehicle provisions in the Act, as these have proven to be controversial since inception.
Bottom line, the future of clean energy, and in particular the solar industry, is in a state of flux depending on the political climate. However, the considerable support and growth we’ve seen towards solar energy infrastructure, solar companies, and solar panels for your home suggest that regardless, the solar energy industry looks like it’s here to stay.
Until next time, keep chasing the sun.
Original Articlehttps://pv-magazine-usa.com/2024/03/11/what-happens-to-the-ira-under-a-new-administration/
